Principle of Economic, practicle
Econ 202 Exam 2 Practice Problems
Principles of Microeconomics
Dr. Phillip Miller
Multiple Choice
Identify the choice that best completes the statement or answers the question.
Chapter 6
____
1. If a binding price ceiling is imposed on the computer market, then
a. the quantity of computers demanded will increase.
b. the quantity of computers supplied will decrease.
c. a shortage of computers will develop.
d. All of the above are correct.
____
2. In response to a shortage caused by the imposition of a binding price ceiling on a market,
a. price will no longer be the mechanism that rations scarce resources.
b. long lines of buyers may develop.
c. sellers could ration the good or service according to their own personal biases.
d. All of the above are correct.
____
3. As rationing mechanisms, prices
a. and long lines are efficient.
b. are efficient, but long lines are inefficient.
c. are inefficient, but long lines are efficient.
d. and long lines are inefficient.
____
4. A tax imposed on the sellers of a good will
a. raise both the price buyers pay and the effective price sellers receive.
b. raise the price buyers pay and lower the effective price sellers receive.
c. lower the price buyers pay and raise the effective price sellers receive.
d. lower both the price buyers pay and the effective price sellers receive.
Figure 6-9
10
price
9
S
8
7
6
5
4
3
2
D
1
D after tax
10
20
30
40
50
60
70
80
quantity
____
5. Refer to Figure 6-9. Suppose the same supply and demand curves apply and a tax of the same amount per unit as shown here is imposed. Now, however, the sellers of the good, rather than the buyers, are required to pay the tax to the government. Now, relative to the case depicted in the figure,
a. the burden on buyers will be larger and the burden on sellers will be smaller.
b. the burden on buyers will be smaller and the burden on sellers will be larger.
c. the
Principles of Microeconomics
Dr. Phillip Miller
Multiple Choice
Identify the choice that best completes the statement or answers the question.
Chapter 6
____
1. If a binding price ceiling is imposed on the computer market, then
a. the quantity of computers demanded will increase.
b. the quantity of computers supplied will decrease.
c. a shortage of computers will develop.
d. All of the above are correct.
____
2. In response to a shortage caused by the imposition of a binding price ceiling on a market,
a. price will no longer be the mechanism that rations scarce resources.
b. long lines of buyers may develop.
c. sellers could ration the good or service according to their own personal biases.
d. All of the above are correct.
____
3. As rationing mechanisms, prices
a. and long lines are efficient.
b. are efficient, but long lines are inefficient.
c. are inefficient, but long lines are efficient.
d. and long lines are inefficient.
____
4. A tax imposed on the sellers of a good will
a. raise both the price buyers pay and the effective price sellers receive.
b. raise the price buyers pay and lower the effective price sellers receive.
c. lower the price buyers pay and raise the effective price sellers receive.
d. lower both the price buyers pay and the effective price sellers receive.
Figure 6-9
10
price
9
S
8
7
6
5
4
3
2
D
1
D after tax
10
20
30
40
50
60
70
80
quantity
____
5. Refer to Figure 6-9. Suppose the same supply and demand curves apply and a tax of the same amount per unit as shown here is imposed. Now, however, the sellers of the good, rather than the buyers, are required to pay the tax to the government. Now, relative to the case depicted in the figure,
a. the burden on buyers will be larger and the burden on sellers will be smaller.
b. the burden on buyers will be smaller and the burden on sellers will be larger.
c. the